TPG, GIC invests $331 million at Indonesia’s coal firm-sources

JAKARTA, Dec 19 (BestGrowthStock) – U.S private equity firm Texas
Pacific Capital and Singapore sovereign wealth fund
GIC invested 2.99 trillion rupiah ($331 million) for a
stake in an Indonesia coal contractor, two sources with
knowledge of the deal said on Sunday.

TPG and GIC have bought non-voting shares in Northstar
Tambang Persada Ltd, a special purpose vehicle which owns 40
percent in PT Delta Dunia Makmur , according to a
statement to Indonesia’s stock exchange, following a report in
the Financial Times on Dec 18 about the deal [ID:nSGE6BH004].

Delta Dunia is owned PT Bukit Makmur Mandiri Utama,
Indonesia’s second largest coal contractor.

The transaction was conducted early this month when they
bought 2.72 million shares of Delta Dunia for 1,100 rupiah a
share, one source told Reuters.

TPG and GIC bought the shares from the Widjaya family,
which controls conglomerate Sinar Mas Group, and the Bakrie
Group, the source added.

“The investment in Delta is appealing as it has returned
up to 25 percent annually,” another source, who declined to be
identified because the details were not public, told Reuters.

Delta Dunia provides various services to Indonesia’s coal
mine operators such as Bumi Resources , Indonesia’s
largest mining group, controlled by the politically connected
Bakrie family. It transports coal to customers in China, India
and other markets.

Delta Dunia shares have fallen 24 percent so far this
year, underforming a broader Jakarta market up 41
percent.
($1 = 9034.500 Indonesian Rupiahs)

(Reporting by Janeman Latul, Editing by Neil Chatterjee)

TPG, GIC invests $331 million at Indonesia’s coal firm-sources